MP tables amendment to scrap stamp duty cut for second homes

On the floor of the House of Commons last night, Cumbrian MP Tim Farron put forward an amendment which would have scrapped the cut in stamp duty for second homes.

The stamp duty cut is one of the only remaining measures that was introduced in Liz Truss' controversial mini budget last month.

The Government introduced the cut in an attempt to make it easier for people to get on the housing ladder but that are fears that it could also make it more attractive for people to buy second homes in places like the Lake District.

Tim's amendment, which would have seen second homes made exempt from the cut in stamp duty, was defeated by Conservative MPs by 293 votes to 165.

Speaking during the debate on stamp duty, Tim said: "At the moment, Morecambe Bay hospitals have 25% of all beds blocked. Why? Because social care is in crisis. Why? Because there is nowhere available for anybody who works in social care to be able to live in our communities.

"I can tell the Minister that 63% of all hospitality and tourism businesses in the lakes last year had to operate below capacity. Why? Because they could not find the staff. Why? Because there is nowhere for those people to live.

"A housing crisis that already existed before the pandemic has become a catastrophe, in part because of an error made by the right hon. Member for Richmond (Rishi Sunak) at the beginning of the pandemic. He created a stamp duty holiday that created that boom.

"My amendment gives the Government the ability to do good without accidentally doing terrific harm to areas such as the Lakes and the Dales. It is an opportunity for the Government to prove that they do not take rural communities for granted. I hope that the Minister will hear what I have to say and act accordingly."

Responding, the Economic Secretary to the Treasury, Richard Fuller said: "Let me turn, more constructively, to the amendment tabled by the hon. Member for Westmorland and Lonsdale.

"His concerns come from a good place. I have had the privilege of listening to him, on the Front and Back Benches, talk about this issue and the impact on his constituents. I know that he comes from a good place and not, as he said, from the politics of envy.

"The Government already have higher rates for additional dwellings, which were introduced in 2016 and which apply a 3% surcharge to the standard residential rates of stamp duty. That surcharge will continue to apply. This means that, although the Government's changes to stamp duty will ensure that around 43% of transactions will pay no stamp duty land tax, none of those will be purchases of second homes or investments in buy-to-let properties. The Government have taken meaningful action to support local communities on second homes.

"I am very happy to engage with the hon. Member for Westmorland and Lonsdale about this issue, but I say again that there are multiple ways in which we can deal with these issues through different aspects of Government. I hope that he will take this up with other Departments as well, and I urge him to withdraw his amendment."